Snap-on Reports Q2 2025 Results: Solid Performance Amid Global Uncertainty
Snap-on Incorporated , a globally recognized leader in the design, manufacture, and marketing of tools, equipment, diagnostics, and repair systems for professional users, has released its financial results for the second quarter of 2025. Despite a challenging economic landscape, marked by fluctuating global confidence and ongoing trade volatility, Snap-on delivered a resilient performance, maintaining its strategic direction and showing operational strength across core business segments.
Second Quarter 2025 Financial Summary
For the second quarter ended July 2025, Snap-on reported net sales of $1.179 billion, essentially flat compared to the same period in 2024. The company experienced a modest organic sales decline of $8.6 million or 0.7%, which was offset by a favorable $8.6 million impact from foreign currency translation.
Operating earnings before financial services totaled $259.1 million, representing 22.0% of net sales. This compares to $280.3 million or 23.8% from the previous year. Notably, Q2 2024 results included a $11.2 million benefit from final legal payments related to a previous matter, which positively skewed the prior year’s margin by 100 basis points.
Snap-on’s financial services segment delivered $101.7 million in revenue, slightly up from $100.5 million in 2024. Operating earnings in this segment came in at $68.2 million, compared to $70.2 million a year earlier.
Overall, the company posted consolidated operating earnings of $327.3 million, equating to 25.5% of total revenues (net sales plus financial services), compared to $350.5 million, or 27.4%, in the prior-year quarter. The year-ago figures again benefitted from the legal settlement.
Net earnings for Q2 2025 were $250.3 million, translating to $4.72 per diluted share, down from $271.2 million or $5.07 per diluted share in Q2 2024. The previous year’s earnings included an after-tax gain of $8.7 million, or $0.16 per diluted share, from the legal payment. The effective income tax rate remained stable at 22.5%, compared to 22.6% a year earlier.
CEO Perspective
Snap-on’s Chairman and CEO, Nick Pinchuk, emphasized the company’s strategic flexibility and operational discipline in the face of global challenges. “We’re encouraged by our second quarter results—from the return of sales growth in the U.S. Tools Group to resilient margins and solid earnings across the board,” he stated.
He highlighted the company’s proactive shift toward high-turnover product lines, aligning with evolving customer preferences among vehicle repair technicians. “We gained significant traction with quick payback products and maintained momentum in key areas such as OEM dealerships, independent repair shops, and precision torque systems.”
Despite external headwinds, Pinchuk affirmed Snap-on’s confidence in its growth trajectory, supported by its manufacturing footprint, engineering expertise, and the ongoing execution of its Value Creation processes. “We believe our balanced approach of growth and improvement will continue to deliver results. I want to extend my sincere thanks to our franchisees and associates worldwide for their unwavering dedication and contribution.”
Segment Performance Highlights
Commercial & Industrial Group (C&I)
Sales in this segment totaled $347.8 million, compared to $372.0 million a year ago. The segment experienced a 7.6% organic sales decline, partially offset by a $4.5 million favorable currency translation. The downturn was driven by softer performance in the Asia Pacific and European hand tools businesses and reduced activity from customers in critical industries. A bright spot was growth in the specialty torque operation.
Operating earnings fell to $46.9 million from $62.2 million in 2024. The operating margin narrowed to 13.5%, down from 16.7%, largely due to the sales decline and unfavorable mix.
Snap-on Tools Group
This segment posted Q2 2025 sales of $491.0 million, up from $482.0 million in the prior year, driven by a 1.6% organic increase and $1.2 million in currency gains. Sales growth was primarily fueled by stronger demand in the U.S., while international markets remained flat.
Operating earnings rose modestly to $116.7 million, up from $114.8 million last year. The operating margin was unchanged at 23.8%, reflecting consistent profitability despite mixed regional performance.
Repair Systems & Information Group (RS&I)
RS&I segment revenue climbed to $468.6 million, from $454.8 million in Q2 2024. This included a 2.3% organic increase and a $3.1 million foreign exchange benefit. Gains came from increased sales to OEM dealerships and higher demand for diagnostics and repair information products from independent repair shops, although these were partially offset by lower undercar equipment volumes.
Operating earnings rose to $119.8 million from $113.6 million, with the segment’s operating margin improving to 25.6%, up from 25.0% a year earlier.
Financial Services
Revenue from financial services reached $101.7 million, up slightly from $100.5 million in Q2 2024. Operating earnings dipped to $68.2 million, down from $70.2 million, while originations declined by $15.1 million, or 4.9%, to $293.0 million. The decline was attributed to reduced customer credit activity and softer loan demand.
Corporate Expenses
Corporate expenses increased to $24.3 million, up significantly from $10.3 million in the previous year, primarily due to the absence of the one-time legal settlement benefit that was booked in 2024.
